Company Formation in Costa Rica
Costa Rica, officially the Republic of Costa Rica, is a country in Central America, bordered by Nicaragua to the north, Panama to the southeast, the Pacific Ocean to the west, the Caribbean Sea to the east, and Ecuador to the south of Cocos Island. Called “the Switzerland of the Americas” Costa Rica offers many advantages and favorable tax conditions.
Costa Rica is known for its stable democracy in a region with highly educated workforce, most of whom speak English. The country spends almost 7% of its budget on education, compared to a global average of 4.4%. Its economy, once heavily dependent on agriculture, has diversified to include sectors such as finance, corporate services for foreign companies, pharmaceuticals, and ecotourism. Many foreign companies operate in Costa Rica’s Free Trade Zones (FTZ) where they benefit from investment and tax incentives.
With the legal system is based on the Spanish Civil Law, Costa Rica is one of the most discreet business centers in the world which enjoys economic and political stability making it a popular location.
The taxation system in Costa Rica is territorial. Performing activities that are carried on outside of Costa Rica are not subject to any income taxes therein.
Costa Rica Companies are not considered as offshore companies.
All companies are formed under the same legislation, whether they do business in Cost Rica or outside of the territory.
Companies that do not derive any income from sources in Costa Rica are not subject to tax.
Advantages of company incorporation in Costa Rica:
Summary of Costa Rica Limited Company and main characteristics:
|Type of company||Company Limited by shares|
|Corporate Legislation||The Commercial Code, Law No. 3284.
Spanish Civil Law.
|Taxation||For Non-resident sourced activities - Corporation Tax – 0%
Tax on Dividends – 0%
Territorial taxation system 0% for non-residents that do not derive any income from sources in Costa Rica.
|Currency||Standard Currency CRC (The Costa Rican Colon)
Share Capital can be also in US Dollar.
|Paid up capital requirement||Standard authorized share capital is CRC 10,000 divided in to 100 shares of CRC100 each. Minimum paid up share capital is CRC2,500.|
|Time zone||GMT-6 (CST)|
|Minimum no. required||1|
|Local Director required||No|
|Location of Meetings||Anywhere|
|Minimum no. required||2|
|Location of Meetings||Anywhere|
|Local Secretary required||No|
|Registered office required||Yes|
|Standard Currency||CRC, but can be in USD also.|
|Standard Authorized Capital||CRC 10,000|
|Minimum paid up capital||CRC2,500|
|Preparation of accounts||Yes, minimum (can be completed by Consil Formation)|
|Requirement for audit||No|
|Accounts public accessible||No|
|Requirement to file Annual Return||Yes (can be completed by Consil Formation)|
|Need to travel||No|
|Apostille||No. Costa Rica is not a member of the Hague Convention therefore if a bank account is planned to be opened outside of Costa Rica then the corporate documents have to be legalized. Legalization costs depend on the specific countries Consulates rates.|
|Owners||Individuals or Corporate|
Register your Costa Rica Limited Company
- Document Notarization per document: € 500
- Bundle of documents Notarization;
- Document Apostillation per document;
- Bundle of documents Apostillation.